9 Aug 2009

South Korea and India sign free trade deal

6:05 am on 9 August 2009

India and South Korea have signed a free trade deal. Their annual trade is currently $US15 billion.

It is the first such deal by India with a developed economy and South Korea's eighth free trade pact.

The agreement will eliminate tariffs on three quarters of India's imports from South Korea and more than 80% of South Korea's imports from India.

A study by the state-run Korea Institute for International Economic Policy said the pact could boost annual two-way trade by $US3.3 billion in the near term and raise South Korea's GDP by 1.3 trillion won ($US1.06 billion).